- USD / TRY regains bullish traction and is approaching 7.90.
- The lira continues to give away gains after the recent rally.
- Investors are closely following the post-CBRT exchange rate rise.
The Turkish lira start the week on the defensive and raise the USD/TRY to multi-day highs near the 7.90 level.
USD / TRY back to 8.00 (and above)?
USD / TRY rises for the second session in a row and extends the rebound away from monthly lows at the 7.60 zone on Monday.
In fact, the pair recovered the levels seen before CBRT’s interest rate hike in the region of 7.90 earlier in the week, as market participants increased their bets on the dollar in light of recent gains from the lira. It seems that confidence in the national currency needs more than a rate hike and auspicious words from President Erdogan.
Capacity utilization and confidence in Turkish manufacturing will be released on Tuesday ahead of CBRT Minutes on Thursday and CBRT’s economic sentiment and financial stability report on Friday.
Key levels
At the moment, the pair is up 3.04% to 7.8644 and faces the next hurdle at 8.0000 (psychological level) followed by 8.0289 (21-day SMA) and finally 8.5777 (November 6 all-time high). On the downside, a drop below 7.5119 (monthly low on Nov 20) would expose 7.3970 (horizontal support line from the top of August) and then 7.0968 (200-day SMA).
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
